Coke and Pepsi War Article Example | Topics and Well Written Essays - 3000 words

Coke and Pepsi War - Article Example The analysis of the case study brings to light the problems both the companies have had with their concentrate producers, bottlers, and retailers while also highlighting the throat cut competition between Coke and Pepsi. The strategies deployed by the companies are the same: cost leadership and differentiation strategies. The strategic management model also reveals that the problems with the company were related to the supply chain and the diversification strategies into other non-cola drinks. The solution to the problems later discussed in detail is about stabilizing the growth and sales while at the same time re-branding its products to better appeal to the consumers. Coke and Pepsi are the two main competitors in the beverage industry globally. Both the companies have been at war since their inception. The situation is such that both companies, Coke and Pepsi, are at each other’s throats in order to gain most market share in the world especially the United States. Coke and Pepsi, each are trying to come up with innovative products and ideas in pursuit to increase the market share. The effectiveness and creativity of Pepsi and Coke’s strategic advantage will determine the ultimate winner with respect to sales, profits, market share and customer loyalty. The case study ‘Cola Wars Continue Coke and Pepsi in the Twenty-First Century’ present the scenario of both the companies internal and external strategies that have caused each company to battle on for such a long period. Over the years since the inception of both the companies, Pepsi and Coke have faced many issues and challenges that have led them to change their strategies. The main strategic issue for both the company has always lied in their quest for achieving the greater market share. Due to this point, the firms have constantly modified their bottling, pricing and branding strategies as new competition increased and gaining more market share became a life source for the Pepsi and Coke (Yoffie, 2004).